All Forum Posts by: Craig Janet

If it's a long term tenant and the paint will probably have to be redone anyway. I say go for it. As other's have said it makes the home feel like theirs.

I have so many questions? Did you tour the property at all before buying? You replaced both HVAC systems why? Were they working before? Why new windows? Were they damaged, this could have been noticed with a quick walkthrough.$100K for two HVAC systems, windows and electrical panels is pretty steep and is going to be pretty hard to overcome. 

Everyone is mentioning depreciation like its some sort of IRS give away program. All it does is postpone your tax liability, yes you can 1031 but that's just another delay tactic until death. 

I've been buying properties since 2010 but with current rents and increased insurance, I stopped 2 years ago. It's not worth the hassle and risk to squeeze out another 2-3% over a CD or T Bill.

I don't deny that the insurance companies have had a bad couple of years but What about all the years perhaps decades they were profitable? What happened to all that money? It went to the shareholders and CEOs instead of putting it aside for the bad times. Very shortsighted!

I think the casino analogy is accurate the casino doesn't just cut and run after a high roller goes on a hot streak. They have reserves to weather the ups and downs. I live in Louisiana and we went 15 years without a major storm then we were hit with two and all of sudden the insurance companies are broke and left the taxpayers holding the bag.

I don't understand the purpose of this OP. Was this to brag about the renovation cost? The place looks great but we need more information to know if it was a good investment. What was the condition before, what (if any) rent increases, before and after value, and many more. 35K on a small apartment in most situations is nothing to brag about.

Wow this is a very complicated deal. If you really value your relationship with your brother you may have to tell him you got cold feet and want to sell the property and move on. You might loose a little money but you would have lost more from this one sided deal anyway. 

Can you give a breakdown of what a typical $5K turnover includes?

I am also an HVAC and Plumbing contractor for a couple of home warranty companies. Most of the folks I deal with are happy with them. I think the people that benefit the most are older people that live on fixed incomes and have very old equipment in their home. For these guys if an AC needs a $600 motor replacement that could really set them back. Instead they only pay $75 and are cool again. If you need a full replacement expect to have to pay a couple of thousand but still not a bad deal. As with most extended warranties such as cars, electronics, etc your almost always better off self insuring. 

The reason the plumber needed photos are because they must get approval from the warranty company before working. He will submit the photos and the cost to replace or repair and wait for approval. Their labor rates are way below market rates so don't expect any big name established company to show up. 

The cheapest long term solution would be to rip up the tile and but a fiberglass surround. I had a similar situation. I just covered the window with sheetrock and put a fiberglass surround. No one will ever know there is a window there except from the outside. 

I personally would not buy a mobile home on someone else's land. The $250 per month will kill your cash flow indefinitely. Also if the land owner decides not to renew, you will have to relocate the mobile home to a park. The park may not allow rentals or a home that old. Moving a mobile home is going to be at least $3k.